tv On the Money With Maria Bartiromo NBC September 1, 2013 4:00pm-4:31pm PDT
the week. -- we head to a new week on the money. a much faster pace than first thought. the economy grew at annual rate of 2.5%. revised upwards from 1.7%. readings in exports and invests were responsible for much of the revision. the markets got off to a nervous start this week, having the worse day in more than two months on tuesday. concerns about american involvement in syria. stocks recovered though later in the week. america's housing market continues to improve, though at a slower pace, the k-schiller index of cities, saw housing up 12% from a year ago americans are not driving that much.
they have since plateaued even though the economy has recovered. that number continue to fall in the first half of in year and the drop is partly due to the economy and lifestyle as more people choose to live in cities. >> watching syria, waiting for the fed and just how is september shaping up, let's talk about joining me now is the chief investment officer in black rock they've $632 billion and david gordon is head of research. thank you both for joining me today. david, this long lead up to whatever is going to happen in syria, has certainly peculiared the markets to a degree. what do you expect to happen and what impact will it have on the market longer term. you are likely to see u.s. attacks along with some french components in the next few days, but i think these are going to
be very restricted attacks. the obama administration has gone out of its way to really signal what they are going do, and what they are not going to do. i actually think the chances of a retaliation is slim. i suspect that we are going to see some downward pressure in the energy prices in the aftermath of the strikes. >> initially the safe havens moved higher, gold, bonds and oil, they have pulled back in the meantime. what is the market's message? >> the markets are assessing this as strategic, probably something done quickly. markets have one eye on, you talk to the major market participa participants, people are thinking on of, do you start to see contagion, where does russia, china interface with this. by and large, the markets feel
it will be reasonably strategic and quick. >> through it all, we have the possibility of tapering. the threat of tapering pushes rates up. the threat of the attack on syria pushes rates down. where do you think they are going? >> this is why the markets have come close to what we say is fair value wmp the ten year getting closer to 3%. we feel that rates are trending higher. the fed has distorted interest rates down, when ten years were in the high 1s. you are getting close to fair value. we think we drift higher in the next year. you have done a lot of the moves so far. >> and you do not expect peripheral damage. one of the fears is unintended consequences in other parts of the middle east. possibly a confrontation at some point with russia. you don't see that happening? >> i think the main risk here, if you are looking at who, who might retaliate, it's not going to be the russians, it is iran.
but, iran really wants to hold its powder now, it seems to me, they are looking to utilize a new round of negotiations with the west over their nuclear program to ease sanctions on them. i think they are really loathe, the rhetoric aside, to get into a confrontation over syria. >> let's look at the economy, rick, we had encouraging data early in the week. not so encouraging later in the week. the gdp revision was encouraging but the personal income and spending was soft. what is the state of the economy right now? >> the economy is in better shape, up will not see tremendous growth. you had the head winds you had before. and fiscal growth is abating and housing market is, we are a little concerned about the near materi term rate effect. it's inflation and hiring to a
large extent. we think housing is in good shape and the lending mechanism can work. we think the economy is in good shape and the data will continue to be firm and seeing pull backs at time. we think u.s. economy, we are encouraged by where it's going. jeffrey lacker said this week, the criteria the fed set up to begin tapering has been met. do you agree? you think they are tapering in september? >> i think the fed wants to get out of the quantitative easing. it was foam on the runway back then and now the transmission mechanism into employment is dull and forward guidance is a more effective way to manage interest rates. >> and rick, one more cloud on the horizon in washington, we have a debt ceiling that we will hit. and we were reminded it will
happen early october, you think that battle could get ugly. i think we will get to and potential go over. i'm sure the market reaction will not be the same as it was in august 11th. >> absolutely right. i think markets have come conclusion that if it happens it will be a lot of noise and you will create near term volatility and you will not create the incredible duress that you will create in a near period of time. i think it will be an issue. >> rick reader, david gordon. thank you. >> thank you. >> back to maria with the rest of the program. >> thanks so much, bill, up next we are "on the money," we can work it out. i will be joined by the new secretary of labor, tom perez on his new job and the jobs of all americans. and later ferrari has reved up the sales making its the most
>> all right, this labor day weekend we are taking a deeper look at the state of the american worker and the sustainability of job growth in today's economy. labor secretary tom perez joins me in his first national television interview since being sworn in. mr. secretary is, good to have you on the program. thank you for spending time with us on your first national interview. so you were nominated by the president in march. just confirmed in late july. tell me about the priorities right off the bat. what is on your to-do list? >> jobs, jobs and jobs. my first 30 days or 45 days on the job here, i've been meeting people across the country, ceos, labor leaders, people who are looking for work, community college presidents to figure out how we continue to pick up the business of job creation. >> when i speak to business leaders, that uncertainty of the
roll-out of obama-care, and the tax structure, everybody feels we need new tax policy, that is what is hampering their decisions to hire. so you are a few weeks into the job, have you rooeached out to business? >> i have, absolutely. and i have had productive meetings with -- recently i was in nevada and i met with the ceo of the largest public employer of the largest private employer in nevada, mgm, and we talked a lot about the partnership between mgm and other private employers in nevada, and labor unions to address the skills gap to ensure that they have the workforce necessary to succeed. we also talked a lot about health care, balk large businesses are large consumers of health care and he is doing remarkable work to bend that health care curve to make it more affordable and that's, that's been my mantra throughout my career, listening, learning and finding common ground and
that's what we are doing now and that's what we are going to continue to do. >> so, do you think we will see an ease up on the rulemaking for business that they will put the money to work? >> i think we will see, again, common sense coalition, that is what i used to talk about, let's bring common sense to bear. i reject the notion that you have job safety or job creation. that's a false choice. and i have seen it in my work. and when i talk to ceos, they tell me repeatedly, about how the work that we have done in job safety is so critically important, because if there's no regulation, then it becomes a race to the bottom and the employers who are playing by the rules are dragged down by the employers that are not. >> why do you feel that businesses are shifting from full time to part time positions? >> i'm not sure that the data is showing that, may r maria.
>> u.p.s. said that they are not wanting to insure spouses if spouses can get insurance somewhere else. and others are saying, i have to watch the time clock, let's make them part time, i cannot afford to pay benefits. in some cases it's been a negative, it's too expensive the health care. >> i think it's important to distinguish between the date a d the stories. you look at the false premise that has been, health care will move everyone to part time work. the data does not bear that out. over 90% of the jobs implemented since the health care reform has been full time jobs. it will bend the cost curve, all too frequently, my brother is an er doc and the primary care
physician for all too many people whose primary care physicians are the emergency rooms. >> tell me about the minimum wage? will we see it go to $9 an hour in the president's second term? is that a capitol hill battle you are ready to take on? >> i hope the minimum wage will go up, i firmly believe that, nobody who works a 40-hour work should have to live in poverty. i spoke to the ceo recently of, you know, a large retailer and you know what he said to me? i can have the lowest prices on that 70 inch flat screen, but if people cannot afford to buy it, then i cannot sell things. and i really believe that if $7.35 an hour is not sustainable. >> we have another jobs employment report coming out friday, it will be closely watched as we try to figure out what it says about the federal reserve and what are you
expecting, i know you have been traveling all over the country, where are the jobs? >> i didn't bring my crystal ball with me, so, i don't know precisely what the jobs report will say. >> your characterization. >> there's been 41 consecutive months of private sector job creation. 7.3 million jobs have been created. you look at the auto industry. 343,000 jobs have been created since june of 2009, when it was at its lowest point. the president's invest in the auto industry has certainly paid off. so, we see that the economy is slowly and steadily gathering steam. the president would be the first to admit that we need to pick up the pace of the recovery and that is why his better bargain in the middle class, the investment in skills. >> your parents were immigrants. >> they were. >> how does immigration reform dictate how you approach your
job? >> my mother grew up in washington heights, and my dad is also dominican. if you want to talk about job creation and growing the economy. immigration reform is an important part. i'm sure you know, the congressional budget office has talked about and documented the economic development impact of immigration reform. you know, the social security trust fund is viable for two more years, gdp growth, we are half a mile from ellis island and the statue of liberty. >> you spent much of your law in labor and civil rights law. here you are, coming from humble beginnings, what was your first job? >> my first job was picking up golf balls in a golf course and then i worked for sears for 5 years and worked on the back of a garbage truck. you do whatever you have to do. >> i love to hear first jobs, i
was a coat check girl and a stock girl in a dress shop. thank you for being here. >> been great being here. >> up next "on the money." a 1967 ferrari recently sold for more than $27 million, the highest price ever for a vintage car in auction. what is driving up the cost for the italian racing icon? too big.
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>> welcome back, ferrari gearing up for another big year of sales for their fleet of super cars rose 9% for the first half of 2013 and recently the company clutched a big win for the hybrid race car, the million dollar ride sold out before hitting showroom floors. the ceo is here with us. good to have you on the program. >> thank you for having me. >> thank you for joining us and bringing us the things of beauty behind us. recently a rare, 1967 ferrari set a record as the most expensive road car sold in action. $27.5 million. right? >> yes. >> what does that say about the ferrari brand among the luxury consumer? >> the ferrari is the most powerful brand in the world. people are investing in things that have rarity and quality and
heritage. >> the last time that you and i spoke two years ago i believe it was. you said almost 30% of ferrari sales came from the united states. making ferrari's number -- it's the number one market, u.s. is right now for ferrari, how are your sales today, is it still that the u.s. is number one? >> it's by far the largest market for ferrari, one of the most important. we have 35,000 customers. we sell almost 2,000 cars a year. but our focus is in quality, not in quantity. so we want to establish a great relationship with our customers that shorten the distance between manufacturing and the customer base. and make sure that their experience is the highest level as possible. >> you celebrated the 20th anniversary of the ferrari challenge. it's a program where the ferrari owners can compete against each other. they are competing at world class racetracks and ending in italy. how are they done? >> they are market brand --
these are people, customers that want to experience the rush of racing a ferrari on the weekend, not to go to play golf, to talk to peers and have people with the same interests, and we offer them an exclusive platform. formula 1 coach, and a wonderful car and it's an exclusive way to enjoy the car. >> the $1.3 ferrari that was unveiled this year, only 199 were being made and and they are sold out already. it's amazing. >> they will only bring 100 units and we have almost 200 requests. i want to focus on the fact that they are integration, it's our formula 1 department. plus, we are exploring new ways in hybrid technology, so we have two engines, combu is --
combustion engine. and an experience that only the ferrari can give. >> we have a few models here, please, show us. so this -- >> this is the hottest car at the moment. >> this is the hottest car of the moment? look at the car, i feel like i'm in a luxury living room. >> it's dual clutch transmission, automatic transmission. >> i wondered that if it was only stick shift, but you can do automatic. >> we do not produce any more stick shifts in the ferrari. >> all you do is press the button. >> you can feel the most amazing speed in an easier way, in a more functional way. >> it's so beautiful. i mean the design is really one of the best things about ferrari, right? >> the design and every car --
we sell 2,000 cars in the united states, there's not one car that is entering north america that is the same as the other, because there's a customization program, taylor made, you can see the carbon fiber and we have customers spending 10 or 15% of the value of the car just to make it their own ferrari. >> how fast can it go? >> we can go up to 200 miles an hour. >> 200 miles an hour. >> 0-60 in three seconds. >> marco, good to have you on the program. thank you for bringing these beautiful cars and we appreciate you joining us. >> thanks a lot. >> up next, take a look at the news in the up coming week that will have an impact "on the money." marco and i will take a spin mere on wall street. [ woman ] dear chex cereal,
i've never written a fan letter before, but you've done the impossible. you made gluten-free cereals in a whole bunch of yummy flavors. cinnamon chex and honey nut chex are two of our favorites. when my husband found the chocolate one, we were in cereal heaven. the only problem is, with so many great flavors you're making it very hard to choose. your fans, the mcgregor family. 'cause we love chex. >> for more on our show and our guest, check out our website, and i hope you will follow me on twitter and google +. first though, let's look at the stories in the week ahead that could move the markets and impact your money this week. on monday, all the u.s. markets will be closed for the labor day holiday.
and on wednesday, the federal reserve will release the beige book that gives the snap shot of the economic conditions across the country and on wednesday, the motor vehicle sale's report is due, we will see if new car sales surge in the month of august. and on thursday, g-20 leaders will convene for a two-day g-20 summit. that will did do it for us today, my guest, next week, the ceo of blackstone. have a great week everyone, i will see you nex ♪ too big. ♪ too soft. too small. ♪
you are watching an nbc bay area especial. tonight, bay area proud he was there when one of man's greatest moments, the landing on the moon, but this bay area man reveals what it was like to be there during one of man's darkest hours. >> i get goose bumps talking about it. >> she found it on craigslist, her purpose in life. >> that was it. that's what i could do. >> what this young mother that put her on a path to help countless babies that could help with what she has to give. >> four to six months i was treated. >> it was a prognosis